Economic growth in Central America has
increased rapidly over the past 20 years. Currently, the
gross domestic product (GDP) per capita for the six Central
American countries of Costa Rica, El Salvador, Guatemala,
Honduras, Nicaragua and Panama averages approximately
US$3,600. However, masked behind this average figure is a
Sub region of 40 million people with a wide variety of
income, where more than half of the population lives in
poverty. Energy in general and electricity specifically are
critical for economic development. Electricity is needed to
power the machinery that supports income-generating
opportunities. Capital (both domestic and foreign) is
attracted to countries that are able to offer an affordable,
reliable source of electricity for businesses. Although the
individual electricity markets of Costa Rica, El Salvador,
Guatemala, Honduras, Nicaragua and Panama are not large,
together the six countries collectively generated nearly 38
Terawatt-hours (TWh) of power, equivalent to around 70
percent of the annual electricity supply of a medium-sized
country in Latin America. The World Bank has undertaken a
series of studies to better understand the energy challenges
facing these six Central American countries that are to be
joined by Sistema de Interconexion Electrica para America
Central (SIEPAC) and to identify actions to promote the
sound development of the sector. These studies have been
prepared by a team of policy experts...

Albania is among the most vulnerable
countries to external energy shocks and climatic conditions,
because of its high dependency on hydropower for
electricity. Given highly volatile international energy
prices and expected global warming, it is becoming
increasingly important to manage the demand for electricity.
However, the country has long been faced with a significant
problem of electricity metering. About one-third of total
energy is lost for technical and nontechnical reasons. This
paper estimates the residential demand function by applying
a two-stage system equation method for an endogenous
censored variable, because the lack of metering makes the
electricity consumption partially observable for the
econometrician. It is found that metering is important to
curb non-essential electricity use by households. The
electricity demand could also be reduced by raising the
first block rate and lowering the second block rate and the
threshold between the two blocks. In addition, weather
conditions and home appliance ownership would affect the
demand for electricity. But the latter looks more
influential than the former.

Sub-Saharan Africa trails other regions
in providing access to electricity for poor urban and rural
residents. This poor performance can be linked to various
factors, including political interference in utility policy,
higher investment costs and lower profitability of extending
service to rural areas. But a major obstacle to wider access
is the high charges consumers must pay to connect to the
electricity network. The connection charges in Sub-Saharan
Africa are among the highest in the world, which has
resulted in low rates of electrification in many countries.
This paper reviews ways to improve electrification rates by
addressing the issue of high connection charges. Essential
to the success of such efforts is concurrent political
commitment to identify, examine, and implement various
low-cost electrification approaches and financing solutions
as part of a broad plan to improve access. Electricity
companies can lower their connection-related costs, and thus
consumer charges, by using a variety of low-cost
technologies and materials in distribution networks and
household connections; making bulk purchases of materials;
and adjusting technical standards to reflect the lower loads
of households that use a minimum amount of electricity.
Strategies for lowering connection charges may also include
spreading charges over a reasonable period...

This report documents the experience of
developing a green electricity scheme in Shanghai, China. It
is intended to be a resource when replicating this effort in
another city or country. The study consists of two parts. In
Part 1, the general characteristics of both the framework
for green electricity products and the market for green
electricity products are presented. It also presents a
summary of international experience, including a description
of the green electricity concept and the market penetration
in different countries, the characteristics of frameworks
under which renewable electricity products are developed,
and the characteristics of products developed under these
frameworks. Different options for verifying and certifying
frameworks are discussed on the basis of case studies.
Finally, the required institutional framework and options
for awareness creation and marketing are examined. In Part
2, the culminating framework and product characteristics for
Shanghai are presented. The report provides a description of
the scope of green electricity in Shanghai and it also
describes the emerging Shanghai framework for green
electricity products. At the end of Part 2...

The Arab countries have enjoyed
sustained economic growth in recent years, and the high
economic growth has triggered a rapid increase in energy
demand, particularly for electricity. Besides enabling
energy imports, interconnected power networks impart a
series of additional benefits such as improved system
reliability, reduced reserve margins, reactive power
support, and energy exchanges that take advantage of daily
and seasonal demand diversity and disparities in marginal
production costs. As a result, a world-class electricity
supply system can be achieved with much lower capital
expenditures and ongoing expenses than will otherwise be
attainable on an individual-country basis. The regional
power interconnection of the Gulf Cooperation Council (GCC),
allows electricity exchange among its six member states:
Kuwait, Saudi Arabia, Bahrain, Qatar, the United Arab
Emirates (UAE), and Oman under an agreement signed in 2009.
The interconnection is targeted at sharing capacity reserve
and improving supply reliability...

This paper focuses on the institutional
arrangements needed for facilitating regional electricity
cooperation. The paper begins by discussing the theory of
international trade cooperation in electricity, with a view
to discussing what preconditions might be important in
facilitating wide area trading across national borders. It
then discusses two sets of case studies. The first set
focuses on three regional developing country power pools --
the Southern African Power Pool, the West African Power
Pool, and the Central American Power Market. The second set
focuses on three regional power pools in more developed
countries -- one in the United States, the Single
Electricity Market in Ireland, and the South East Europe
market. These cases highlight the potential and difficulty
of having cross-jurisdictional power pools. In the light of
the theory and evidence presented, key lessons are drawn in
the areas of preconditions for trading, necessary
institutional arrangements, practicalities of timetabling,
reasons to be hopeful about future prospects...

India has led the developing world in
addressing rural energy problems. By late 2012, the national
electricity grid had reached 92 percent of India s rural
villages, about 880 million people. In more remote areas and
those with geographically difficult terrain, where grid
extension is not economically viable, off-grid solutions
using renewable-energy sources for electricity generation
and distribution have been promoted. The positive results of
the country s rural energy policies and institutions have
contributed greatly to reducing the number of people
globally who remain without electricity access. Yet, owing
mainly to its large population, India has by far the world s
largest number of households without electricity. More than
one-quarter of its population or about 311 million people,
the vast majority of whom live in poorer rural areas, still
lack an electricity connection; less than half of all
households in the poorest income group have electricity.
Among households with electricity service, hundreds of
millions lack reliable power supply.

This study seeks to understand how
materials scarcity and competition from alternative uses
affects the potential for widespread deployment of solar
electricity in the long run, in light of related technology
and policy uncertainties. Simulation results of a computable
partial equilibrium model predict a considerable expansion
of solar electricity generation worldwide in the near
decades, as generation technologies improve and production
costs fall. Increasing materials scarcity becomes a
significant constraint for further expansion of solar
generation, which grows considerably slower in the second
half of the coming century. Solar generation capacity
increases with higher energy demand, squeezing consumption
in industries that compete for scarce minerals. Stringent
climate policies hamper growth in intermittent solar
photovoltaics backed by fossil fuel powered plants, but lead
to a small increase in non-intermittent concentrated solar
power technology. By the end of the coming century, solar
electricity remains a marginal source of global electricity
supply even in the world of higher energy demand...

South Asian countries, facing challenges
in efficiently meeting growing electricity demand, can
benefit from increased cross-border electricity cooperation
and trade by harnessing complementarities in electricity
demand patterns, diversity in resource endowments for power
generation, and gains from larger market access. The region
has witnessed slow progress in expanding regional
electricity cooperation and trade, and undertaking needed
domestic sector reforms. Although bilateral electricity
sector cooperation in the region is increasing, broader
regional cooperation and trade initiatives have lagged in
the face of regional barriers and domestic sector
inefficiencies. Deeper electricity market reforms are not a
necessity for further development of cross-border
electricity trade, but limited progress in overcoming
regional and domestic barriers will limit the scope of the
regional market and the benefits it can provide.

Tajikistan's electricity system is
in a state of crisis. Approximately 70 percent of the Tajik
people suffer from extensive shortages of electricity during
the winter. These shortages, estimated at about 2,700 GWh,
about a quarter of winter electricity demand, impose
economic losses estimated at over United States (US) 200
million dollars per annum or 3 percent of Gross Domestic
Product (GDP). The electricity shortages have not been
addressed because investments have not been made in new
electricity supply capacity and maintenance of existing
assets has not improved. The financial incentive for
electricity consumers to reduce their consumption is
inadequate as electricity prices are among the lowest in the
world. Without prompt action to remedy the causes of
Tajikistan's electricity crisis and with growing
demand, the shortages could increase to about 4,500 GWh by
2016 (over a third of winter electricity demand) or worse.
The World Bank undertook this study to assist the Government
of Tajikistan (GoT) in finding ways to overcome the current
electricity shortages and establish a sound basis for
meeting the growing electricity demand in Tajikistan. The
study focuses on the investments and policy reforms needed
between now and 2020 to strengthen the financial...

Economic growth in the Latin America and
the Caribbean region has picked up considerably during the
past decade or so. This growth has been aided by widespread
(earlier and more recent) investments in power generation,
transmission, and distribution that increased the provision
of electricity services to households, commerce, and
industry. This report evaluates a number of critical issues
for the power sector in the region in the coming two
decades. These include the expected rates of increase in the
demand for electricity, the required supply of new
generating capacity, the technology and fuel mix of that
generating capacity, and the carbon dioxide emissions of the
sector. One of the key contributions of this study is the
aggregation of individual country plans to the regional and
sub regional levels, using a consistent set of data and a
common methodology. The report also assesses the important
roles of hydropower and natural gas, the way other clean and
low-carbon resources can be expanded, the potential and
benefits of greater electricity trade...

One of the contentious issues in
electricity reform is whether there are significant gains
from restructuring systems that are moderately well run.
South Africa's electricity system is a case in point.
The sector's state-owned utility, Eskom, has been
generating some of the lowest-priced electricity in the
world, has largely achieved revenue adequacy, and has
financed the bulk of the government's ambitious
electrification program. Moreover, the key technical
performance indicators of Eskom's generation plants
have reached world-class levels. Yet the sector is
confronted today with serious challenges. South
Africa's electricity system is currently facing a tight
demand/supply balance, and the distribution segment of the
industry is in serious financial trouble. This paper
provides a careful diagnostic assessment of the industry and
identifies a range of policy and restructuring options to
improve its performance. It suggests removing distribution
from municipal control and privatizing it, calls for
vertical and horizontal unbundling...

Reliable power supply is critical for Tajikistan's economy and poverty reduction goals. Without reliable, affordable electricity throughout the year, Tajikistan's businesses cannot invest, operate and create jobs; hospitals and schools cannot function fully or safely with frequent power cuts during winter; citizens suffer indoor air pollution from burning wood for heating and cooking. Electricity also powers the country's two largest exports: aluminum and agricultural produce, which account for about 30 percent of Tajikistan's annual gross domestic product and almost 45 percent of export earnings. Currently, electricity is the cheapest available resource to heat homes so the residential and commercial sectors are highly dependent on electricity for heat as well as lighting and industrial processes. The Government is responsible for guiding programs that keep power supply apace with demand. The purpose of this study is to assist the Government in further defining ways to meet growing demand for electricity in Tajikistan, with a particular focus on the recurring winter shortages which amount to about 24 percent of winter demand. The study also examines the potential benefits of power exports, particularly during summers when hydropower plants spill energy. The study explores a range of alternatives to meet electricity demand as quickly as possible and develop a short term plan of action to alleviate the social and economic costs of winter shortages. The study focuses on multiple initiatives that can be started immediately and simultaneously...

The electricity sector in Bangladesh has
been facing unprecedented challenges, with severe capacity
constraints and sector subsidies that quadrupled from 0.2
percent to 0.8 percent of gross domestic product (GDP)
between 2010 and 2012, driving the government's fiscal
deficit deeper. This policy note examines the poverty and
distribution impact of one such reform-residential
electricity tariff increases-along with their fiscal
implications. A challenge of such adjustments is how to
minimize their impact on the poor and vulnerable. Using
household survey data, this report studies the
distributional and fiscal implications of the residential
tariff adjustments between March 2010 and March 2012 on to
inform policy dialogue on the provision and targeting of
electricity subsidies. Electricity subsidies are defined as
the difference between the cost of supplying a unit of
electricity and the tariff the end-user is charged for a
given unit. Between 2010 and 2012, real cost of supply
increased almost 20 percent. This policy note focuses on
just one part of a much broader and complex system of
connected energy policies. The policy implications of this
analysis should only be considered in light of this broader
context. In particular...

The Electricity Authority of Cambodia
(EAC) is in its nascent stage of development. However, it
has undertaken initial steps toward increasing public
awareness of electricity regulation and issuing licenses to
larger scale generators and distributors in urban areas.
EAC's next important task is to formalize the
operations of small-scale private operators in the rural
areas. The regulatory framework for rural electricity
operations in the country has yet to be fully developed.
Guidelines and procedures are currently being drafted by
EAC, but they still have to be tested thus, gradual
revisions can be anticipated and precedents must be
established. In addition, the scope of EAC's operations
must be expanded to include, among other things, definitions
of technical standards and procedures for determining tariff
levels. In view of EAC's extensive work plan, the
Energy Sector Management Assistance Program (ESMAP) has
provided a grant toward the financing for a technical
advisor to support EAC in these activities.

India's manufacturing sector has
undergone many spatial adjustments since 1989, including,
for example, the organized sector's migration to rural
locations, the powerful rise of informal manufacturing
within cities, and the development of intermediate cities
for manufacturing. This paper investigates the impact of
these spatial adjustments for electricity usage in India s
manufacturing sector. Striking spatial differences in energy
usage exist, and whether spatial adjustments exacerbate or
alleviate energy consumption strains is important for issues
ranging from reducing India's power blackouts to
stemming rising pollution levels. Using detailed surveys for
the organized and unorganized sectors, the analysis finds
that electricity usage per unit of output in urban plants
declined steadily during 1989-2010. In the rural areas, by
contrast, electricity consumption per unit of output for
organized sector plants peaked in 2000 and thereafter
declined. Decomposing the observed trends in aggregate
electricity usage from 2000 onwards...

As part of its energy sector reforms,
the Government of Pakistan plans to reduce spending on
electricity subsidies to 0.3-0.4 percent of gross domestic
product (GDP) by mid-2016. The reforms will alleviate a
major constraint on the government's budget. However,
they will necessitate increases in the price of electricity,
which have the potential to measurably reduce the welfare of
the poor. The government will need to carefully design the
price increases and provide associated compensation to avoid
this outcome. This paper demonstrates that that it is
possible for the government to protect the poor against most
of the costs of the reform while at the same time improving
the targeting of remaining subsidy expenditures. Measures
that can be taken include targeting subsidies based on
poverty scores and providing targeted cash compensation to
poor households. The authors illustrate how these measures
can be implemented, and estimate their associated welfare impacts.

The purpose of this Social Impact
Analysis (SIA) is to probe the social, poverty, and equity
dimensions of electricity and water sector reforms' and
provide meaningful analysis to policy makers based on
recently collected data. With a focus on households, the end
users of utility services, the study complements the recent
and ongoing studies on the Lebanon water and energy sectors
that deal with more technical and supply side issues. The
study assesses how poor and vulnerable households are
affected by the current utility service situation and how
they may be affected by reform proposals under deliberation.
The aim is to provide policy makers with a deeper
understanding of the social dimensions of water and
electricity consumption as well as tools for estimating the
distributional impacts of reform measures. This study
followed the Poverty and Social Impact Analysis (PSIA)
approach, an increasingly common approach, used both within
and outside the World Bank to evaluate the distributional
impacts of policy reforms. Chapter two provides a review of
household electricity supply and demand...

The Palestinian Territories (West Bank
and Gaza Strip) are highly dependent on energy imports from
neighboring countries because of its lack of domestic energy
resources. The Israeli Electricity Corporation (IEC) is the
largest supplier of electricity to the Territories,
supplying around 88 percent of its total electricity
consumption. In this context the Palestinian Authority (PA)
has been actively engaged in a comprehensive reform of the
electricity sector to increase its overall efficiency,
bringing in the commitment and involvement of all
stakeholders and resulting in the creation of a
well-structured electricity market. Alongside steady
increase in electricity consumption, however, non-payment
for electricity imported from the IEC has increased over the
past few years, amounting to 58 percent of its total cost.
The non-payments or partial payments of these bills create
deficient for the IEC, which then leads the Israeli
government to proceed with monthly deductions from the
clearance revenue, thus accruing as debt. This assessment
aims to precisely understand the sources and the reasons for
non-payment of electricity in the Territories and to develop
an action plan based on current programs and activities led
by the Palestinian Energy and Natural Resources Authority
(PENRA) and the donor community. The impacts of non-payment
for electricity on the complete financial payment cycle are
assessed in detail. An overview of the Palestinian
Electricity Sector is provided in Chapter 2...

A study of the atmospheric surface electrical activity in the Maracay city (10°14'59.1"N 67°37'20.6"W 436masl) is performed, through the analysis of the Carnegie curve. We present the methodological construction of the Field Mill, for the measurement of the electric field atmospheric, and a counter of atmospheric ions, based on the capacitor Gerdien. We shown that the local heating due to convective movement during the morning could change the concentration of ions, and subsequently, produce a second local mínimum in the curve of the local electric field, this second minimum is not a feature of the Carnegie curve. We conclude that the curve of local variation of the superficial atmospheric electricity activity, under conditions of clear skies and no clouds, for the tropical region, as in the Maracay city, is functionally similar to Carnegie curve.